Raw sugar prices rise as commodity markets climb
- December New York cocoa rose by 0.7% to $2,674 a tonne
- December arabica coffee rose by 0.75% to $1.8685 per lb
- October raw sugar was up 1.3% at 19.20 cents per lb
LONDON: Raw sugar futures on ICE were higher on Wednesday, boosted partly by gains in crude oil and other commodity markets, while white sugar prices also rose in the run-up to the expiry of the October position later in the day.
Sugar
October raw sugar was up 1.3% at 19.20 cents per lb by 1118 GMT.
Dealers said the market had recovered some ground after slumping to the lowest since early August at 18.57 cents but there appears little reason to expect a major rebound in prices partly due to the prospect of Indian exports.
October white sugar, which expires on Wednesday, rose 1.2% to $501.60 a tonne.
A small delivery was expected following the recent drop in the open interest which stood at just 2,945 lots, or 147,250 tonnes, as of Tuesday.
Hurricane Ida negatively impacted an estimated 118,000 acres (478 square kilometers) of sugarcane crops in Louisiana, or about 26% of the crop that would be harvested for sugar production in the state, according to a preliminary report released on Tuesday.
Raw sugar hits one-month low as funds sell amid weak demand
Coffee
December arabica coffee rose by 0.75% to $1.8685 per lb.
Dealers said the market was buoyed by strength in other commodity markets but gains were capped by an improving outlook for next year's harvest in Brazil following recent rains.
November robusta coffee rose by 0.7% to $2,078 a tonne.
Cocoa
December New York cocoa rose by 0.7% to $2,674 a tonne.
December London cocoa rose by 1.3% to 1,817 pounds per tonne.
High soil moisture in top producer Ivory Coast is expected to help the development of the October-to-March main crop, farmers said.
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